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Terry-Martins's avatar
Terry-Martins
Copper Contributor
Dec 22, 2022

Excel Formula Help

Hi @everyone, I would please like some with a formula. I'm taking an online course on Excel and was presented with a practice challenge, I couldn't quite figure out how to answer the question so I looked to the solution which came with the question but I have a hard time understanding all of the answer. Can someone please explain what the significance of the +1 in the formula bar is? 

The first image is the question and the 2nd image is the answer.questionanswer

excel
Formulas and Functions
  • Patrick2788's avatar
    Patrick2788
    Silver Contributor
    Dec 22, 2022
    I believe the +1 is there so you arrive at the correct price.

    For example, let's say the price is $100. The 'markup rate' is 25%. If you multiply 100*25% you get $25. However, if you multiply 100*1.25 you arrive at the correct price after the markup has been applied: $125.

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